Boards fail on strategic focus

An interesting article in the January 2015 edition of The Harvard Business Review by Dominic Barton and Mark Wiseman, Where Boards Fall Short: most boards aren’t delivering on their core mission of providing strong oversight and strategic support for management’s efforts to create long-term value.

Why the federal budget is not like a household budget

This is a timely article from Warwick Smith (research economist at the University of Melbourne) on the simplistic and misleading view that many in the public and the Parliament (and, alas, many economists) have of Government budgeting.

Managing Government finances is very different from managing a household Budget, and confusing the two approaches leads to poor public policy. The key differences include:

• Governments can compulsorily levy their income from taxpayers according to its needs, albeit that there may be some political pain and economic implications which may impose some limits
• Governments can (and do) print money (creating income out of nothing), with the only limits being balancing the inflation and exchange rate effects
• the need to balance budgets is a myth, which harks back to the days when currencies were backed by the gold standard

Higher education changes a ‘fraud on the electorate’

This is an excellent article on the Government's poorly conceived and executed higher education "reforms" from Stephen Parker, Vice Chancellor at the University of Canberra, and one of the only University leaders to speak out against the proposals.